The Hoot #36

Word Of The Week: Nvidia 🔥

Author

Matt Brimacombe
August 28th, 2023

Scatt's Seeds for Thought:

🌱 Hot Word Of The Week: Nvidia 🔥

🌱 World’s Biggest Private Credit Funds 💰

🌱 BRICS Is On The Move 👀

🌱 Solana & Shopify Partnership 🤝🏼

Meme of The Week

Year-to-date Market Performance:

  • S&P 500: 14.75%

  • Dow: 3.62%

  • Nasdaq Comp: 29.85%

  • Bitcoin: 57.51%

  • Ethereum: 37.52%

  • Scatt Capital’s Fortune Strategy: 0.97% (Since Inception (12/22): -3.37%)

Market News:

  • 7-Day Change in Crypto Market Cap: -$6bn

  • FED OFFICIALS SEE RATES CLOSE TO PEAK

  • COINBASE ACQUIRING STAKE IN CIRCLE: USDC ISSUER

  • S&P DOWNGRADES SEVERAL BANKS CITING TOUGH CONDITIONS

  • SCHWAB CUTTING STAFF TO SAVE $500M/YEAR

  • MORTGAGE RATES AT HIGHEST POINT SINCE 2000: 7.23%

  • VACCINE STOCKS JUMP ON CONCERNS OF LOCKDOWNS

  • BINANCE IS SELLING OFF BITCOIN TO BOOST $BNB

  • EXISTING HOME SALES SLIDE ON HIGHER RATES & LOW INV.

  • VC INVESTMENTS IN EU DROPPED 61% YoY IN H1 2023

  • FINANCIAL FIRMS ARE BEING LURED TOWARDS THE SOUTH

  • MARKET EASILY DIGESTS $1T JUMP IN T-BILL SUPPLY

  • CAR PRICES BECOMING UNSUSTAINABLE FOR CONSUMERS

  • CHINA LAUNCHED BLOCKCHAIN DATA EXCHANGE PLATFORM

  • ZILLOW OFFERS 1% DOWN PAYMENT TO LURE BUYERS

  • T-MOBILE LAYS OFF 5,000 EMPLOYEES

  • THE WEEK AHEAD: 

    • Job Openings

    • Consumer Confidence

    • PCE Inflation Index

    • Construction Spending

Word Of The Week: Nvidia 🔥

The martyr of chips & king of AI.

Nvidia has been on an absolute tear this year (215% to be exact).

Additionally, it absolutely SMASHED earnings this week.

Here are some facts about them now:

  • They’re worth 8.8x more than Intel

  • Or 6.9x more than AMD

  • They’re the 5th most valuable public company

  • They expect $183mil/day in revenue in Q3

  • EPS increased 900% since last year

  • Short sellers have now lost $11.4 bn this year

Boom 💥

World’s Largest Private Credit Funds 💰

The new kid on the block.

Private credit is hot right now (repping a $1.5 TRILLION market). Here are the top 10 biggest funds:

  • Ares Management Corp. Capital Europe: $11.2 billion

  • Oaktree Cap Mgmt Lending Partners: $10 billion

  • Carlyle Group Credit Opportunities Fund III: $8.5 billion

  • Blackstone Green Private Credit Fund: $7 billion

  • Hayfin Cap Mgmt Direct Lending Fund IV: $6.5 billion

  • Sixth Street Opportunity Partners V: $3.5 billion

  • KLCP III: $3.5 billion

  • Berkshire Bridge Loan Investors III: $3.5 billion

  • Bain Capital Global Special Situations 2022: $4 billion

  • OHA Strategic Credit Fund III: $3 billion

There is A LOT of money & interest in the space right now.

Oaktree is raising a RECORD $18 billion fund which would make it the largest ever.

Crazy numbers.

BRICS Is On The Move 👀

The other world power.

The group had a 3-day summit in South Africa earlier last week (my hometown)

Here are the 4 biggest takeaways:

  • Iran, Saudi Arabia, the UAE, Argentina, Egypt, & Ethiopia are all official members now: This doubles the size of the bloc.

  • Chinese president Xi Jinping missed a highly anticipated speech on Tueday.

  • Putin didn’t travel to the summit after an arrest warrant was issued.

  • China and India pull troops from their disputed border issue.

What kind of a threat is BRICS to the West?

Whatever it was before, it’s a slightly bigger problem now.

Solana & Shopify Partnership 🤝🏼

Crypto & online payments have finally merged.

Solana Pay is a payment protocol built on Solana blockchain.

Now Shopify accounts for 10% of ALL U.S. commerce (or $444bn globally).

Solana Pay has now integrated with Shopify as a payment option.

This is MASSIVE news.

Average credit card processing fees are around 2.00% - 3.50%/transaction.

Solana Pay essentially makes this fee-free, costing $0.00025/transaction.

Of course there are some challenges we’re yet to face, buuuut….

It’s adoptions like these that are going to change the world 🌏

If you like receiving market updates, check us out here on LinkedIn; here on Twitter; or here on Instagram 📊

See you next week 🦉

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.